Let’s talk about a common trap many small business owners fall into—getting caught up in the time-consuming task of setting up a business license and entity structure. Now, don't get me wrong; choosing the right entity structure is important for keeping your business on the right track. But let me tell you, it’s one of the least valuable things you can focus on when it comes to actually growing your business and making money. Here’s why.
The Business Startup Checklist
You’ve just started your business, and there’s a list of things you need to do. Maybe you’ve been scrolling through YouTube or TikTok, soaking up all the startup advice you can find. So, you head to LegalZoom or a similar site to get your business license and set up an LLC. And hey, if you’re going to do it yourself, more power to you. But here's a tip: save yourself some time and potential headaches by paying a lawyer $100 to $150 to handle it. Why? Because it frees you up to focus on what really matters—growing your client base and making sales.
In fact, you could visit your local SBA Business Development Center or Chamber of Commerce for a referral to a reliable lawyer. Not only will you get expert help, but you'll also start building your professional network. And trust me, having a strong network is crucial for your business's long-term success.
The Real Measure of Success: Serving Clients and Customers
Once you’ve got that shiny new business license, you might feel like you’re officially a “real business owner.” But let’s be real: having a business license doesn’t mean much if you don’t have clients or customers. If you’ve yet to make a single sale or secure a client, I’d think twice before worrying about entity structures and licenses. The whole point of being a business owner is to have a growing demand for your services or products, right? Focus on building that demand first.
Remember, it’s better to have a solid customer base and then worry about formalizing your business. This approach will not only save you time but will also ensure that you’re focusing your energy on activities that directly contribute to your business's growth and profitability.
Why Professional Help Is Worth Every Penny
I know what you’re thinking: “Why should I pay someone to do something I can do myself?” I get it. We all love saving a buck here and there. But think of it this way: paying a professional to set up your business structure properly from the start can save you countless hours and potential legal headaches down the road. And those hours? They’re better spent on activities that generate income and grow your business.
For example, if you're in the early stages, wouldn’t it be more beneficial to spend time perfecting your sales pitch, enhancing your product, or marketing your services? This is how you create value and drive your business forward. Leave the nitty-gritty of legal structures to the experts. After all, you wouldn’t perform your own root canal just because you watched a few YouTube tutorials, right?
Building Your Network and Focusing on Growth
And let's not forget the added benefit of building your professional network. By connecting with a lawyer or visiting your local SBA or Chamber of Commerce, you're not just checking off a task from your list. You're starting to build relationships that can provide support, referrals, and opportunities down the line. A strong network is one of the most valuable assets a business owner can have.
In the early stages of your business, your primary focus should be on activities that directly lead to growth and revenue generation. Whether it’s fine-tuning your service offerings, marketing to new audiences, or nurturing relationships with existing customers, these are the tasks that will truly make a difference.
Bringing It All Together
So, here’s my advice: don’t fall into the trap of getting bogged down with administrative tasks like setting up your business license and entity structure. While these are important, they shouldn't be your top priority. Instead, focus on serving your clients, building your customer base, and growing your business. Once you’ve got that down, then you can shift your attention to formalizing your business structure.
Remember, being a business owner isn’t just about having a license or a title. It’s about creating value, solving problems, and making a positive impact. So, roll up your sleeves, get out there, and start doing what really matters. Your future self will thank you.
Until next time, keep pushing forward and remember—success is not just about checking off items on a list; it's about making meaningful progress toward your goals.
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